Climate funding surged 20% in 2023, outpacing the overall growth in global philanthropic giving for the first time since 2020, according to U.S. based ClimateWorks Foundation's 2024 Funding Trends Report. This fifth edition provides five years of insights into how philanthropy is driving progress in climate action, and highlights stark funding gaps and emerging priorities in the face of escalating climate impacts.

The report analyzes overall philanthropic funding from individuals and over 90 foundations in 2023, revealing that $9.3 billion to $15.8 billion was directed toward mitigating climate change.

"The growth in climate funding is a positive step, but the stakes couldn't be higher," said Helen Mountford, president and CEO, ClimateWorks Foundation. "As the global landscape becomes more complex and the planet continues to overheat, philanthropy has a critical role to play in catalyzing transformative climate action in a way that is resilient to political shifts and focused on what people need most: economic and development opportunities, health and security, and a livable planet. By acting boldly and collaboratively, philanthropy can bridge divides and help build a sustainable and equitable future for all."

Major findings 

• Record growth: In 2023, climate giving grew by 20% year over year, with foundation funding reaching a record $4.8 billion – nearly triple the $1.7 billion in 2019.
• Top-funded priorities: Clean electricity, forests, and food & agriculture were the three top-funded sectors from 2019-2023, with public engagement remaining the leading enabling strategy for climate action funded by philanthropy.
• Geographic funding gaps: The U.S. and Europe received 60% of tracked funding directed to a single country or region 2019-2023, while Africa, Other Asia and Oceania, and Latin America – home to over 6 billion people – received an estimated 20%. This disparity extended to grantmaking approaches, with low-to-middle-income countries receiving only 14% of foundation funding as flexible, core support, compared to nearly 33% for U.S. and European grantees.
• Adaptation and resilience: For the first time, the Funding Trends Report includes data on adaptation and resilience efforts, which received at least $600 million in foundation funding in 2023 to help communities adapt and be more resilient to growing climate impacts.
• Emerging focus areas: Brazil (host of COP30) and the industrial sector (responsible for one-third of global emissions, but severely underfunded) are receiving increased attention as funders respond to global climate priorities.

Despite this progress, climate giving remains under 2% of total global philanthropy, far short of what's needed to halve emissions by 2030 and avert the worst climate impacts.

"The time is now for ambitious, strategic funding. Philanthropy must seize this moment to accelerate progress toward 2030 climate goals," said Surabi Menon, vice president of global intelligence, ClimateWorks Foundation. "With countless investable solutions ready to scale, the field is ready to absorb significantly more funding right now. Collaborative platforms and resources are in place to guide funders toward maximizing impact for people and the planet."

The report highlights three key opportunities for philanthropy

• Unlock philanthropy's catalytic and collaborative potential to spur game-changing investments from public, private, and multilateral finance for climate solutions.
• Invest deeply in grantee capacity development and multi-year flexible, core support, especially in low-to-middle-income countries.
• Embrace holistic, integrated climate solutions at the intersection of societal issues such as human rights, public health, and economic development.

Read the full report.